(1) Except as provided in ORS 709.220, subsection (2) of this section, or as lawfully authorized by the instrument creating the trust relationship or by court order, funds held by a trust company as fiduciary shall not be invested in stock or obligations of, or property acquired from:
(a) The trust company or its directors, officers or employees;
(b) Individuals connected to the trust company or its directors, officers or employees;
(c) Organizations in which the trust company or its directors, officers or employees hold an interest;
(d) Affiliates of the trust company or their directors, officers or employees;
(e) Individuals with whom there exists an interest that might affect the exercise of the best judgment of the trust company in making the investment or acquiring the property; or
(f) Organizations in which there exists an interest which might affect the exercise of the best judgment of the trust company in making the investment or acquiring the property.
(2) Subsection (1) of this section shall not apply if the trust company invests funds held by it as fiduciary in any open-end or closed-end management type investment company or investment trust for which the trust company, or an affiliate of the trust company, acts as investment advisor or custodian or provides other services, for which services the trust company and its affiliates may receive reasonable fees.
(3) For the purposes of this section, companies are affiliated if they are members of the same affiliated group under Section 1504 of the Internal Revenue Code. [1989 c.604 §3; 1991 c.353 §1; 1997 c.631 §213]
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